Responsible Official: Senior Vice President for Operations / Vice President for Finance and Chief Financial Officer
Responsible Office: Office of the Senior Vice President for Operations / Office of the Vice President for Finance and Chief Financial Officer
Effective Date: July 16, 2025
Revision Date: July 16, 2025
Policy Sections
1102.1 Delegation of Financial Authority
1102.2 Financial Leadership Reporting Structure
1102.3 Financial Leadership Accountabilities
1102.4 Lead Administrator Employee Lifecycle Oversight
1102.5 Financial Management
1102.6 Annual Attestation
1102.7 Escalation
Scope
This policy applies to all Yale faculty and staff responsible for the Financial Management of a Unit, as defined in Definitions, below. It establishes the responsibilities, accountabilities, and escalation paths for Unit Financial Management, creating a framework that outlines the financial roles, responsibilities, and accountabilities of the Units’ leadership positions to create a consistent, connected, and cohesive Financial Management structure across the University.
Note: The Unit Leader (“UL”), Finance Functional Leader (“FFL”), and Lead Administrator (“LA”) each have other managerial responsibilities described in other policies and procedures. This policy is not intended to limit those responsibilities. Rather, it is solely intended to describe the purpose and expectations for the partnership of the UL, FFL, and LA in fulfilling their Financial Management responsibilities.
Note: This policy is being implemented in a purposeful, phased approach. As of this revision, the following are explicitly excluded from the scope of this policy and not specifically subject to the provisions of this policy:
- Units below the planning unit level of the Faculty of Arts and Sciences (“FAS”).
Policy Statement
For each Unit across the University, three key leadership roles are entrusted with financial responsibilities and accountabilities that are of paramount importance for effective Financial Management at Yale: the UL, FFL, and LA. Each category of leader holds the authority, accountabilities, and responsibilities articulated in this policy.
Reason for the Policy
Yale is entrusted with funds from numerous sources to support its missions. Yale is committed to ensuring that all Yale community members utilize University funds appropriately and exercise their operational responsibilities in accordance with ethical business practices and in compliance with applicable laws, regulations, policies, and other relevant requirements.
In support of that commitment, this policy codifies the responsibilities and accountabilities of key financial leadership roles and the organizational reporting relationships that emanate from the Vice President for Finance and Chief Financial Officer (“VPF/CFO”), which is the role charged by the Board of Trustees of Yale University (“Yale Corporation”) with managing the financial affairs of the University – and the Senior Vice President for Operations (“SVP Operations”) – charged by the Yale Corporation with overseeing specific University operations, including finance.
This policy supports Unit goals and success by establishing a model to ensure alignment with University financial practices and expectations. It supports both the University mission and individual Units by promoting clarity and transparency, as well as effective and efficient organization and practice.
Definitions
Dual Reporting Line
An organizational structure where an employee reports to and is accountable to more than one individual.
Finance Functional Leader (“FFL”)
The individual responsible and accountable for providing broader financial oversight of multiple Units and supporting Financial Management for the Unit when needed.
This individual is the senior financial strategic leader outside the Unit who manages the Financial Management reporting line of the LA in coordination with the UL. The job title of an individual in this role may vary based upon where they sit in the University’s organizational structure.
Financial Management
The strategic planning, organizing, directing, controlling of, and accounting for the financial activities and resources within a Unit. It involves the application of management principles to financial resources, with the goal of supporting the University mission, ensuring efficient and effective allocation of resources, and achieving the Unit’s financial objectives.
Financial Management does not include the approval of budgets. The Provost is responsible for approving budgets, and nothing in this policy alters that responsibility.
Lead Administrator (“LA”)
The most senior administrator, other than the UL, in a Unit or shared business office with accountability for the Financial Management of the Unit. The LA may have other administrative responsibilities for the Unit in addition to Financial Management, e.g., human resources, technology, facilities, etc.
Unit
A Yale organizational entity. Units may include, but are not limited to, departments, schools, centers, institutes, divisions, or subdivisions of such entities.
Unit Leader (“UL”)
The executive officer of the Unit, responsible and accountable for overall direction and performance, including Financial Management.
This individual is typically the dean, director, chair, or vice president of a Unit and is accountable for its overall success, including but not limited to, academic, operational, financial, safety, compliance, reputation, and culture.
Policy Sections
1102.1 Delegation of Financial Authority
Financial authority at Yale originates from the Yale Corporation, which directs the VPF/CFO to manage the financial affairs of the University and the SVP Operations to oversee specific University operations, including finance. To support this directive, the VPF/CFO delegates authority and responsibility for the Financial Management of a Unit or group of Units to FFLs. The FFLs sub-delegate authority and responsibility for the Financial Management of Units or groups of Units to LAs. The formal delegations and sub-delegations are reflected in letters, signed by the VPF/CFO or FFL and issued to the FFL or LA, that detail:
- the scope of the delegated or sub-delegated financial authority;
- the associated responsibilities and accountabilities; and
- the parameters within which sub-delegations, if any, may be made.
The VPF/CFO holds full discretion regarding the delegation of financial authority to FFLs. Similarly, an FFL to whom the VPF/CFO has delegated financial authority holds discretion within the parameters of their delegation letter regarding the sub-delegation of financial authority to LAs within their Unit(s) of responsibility. Generally, the VPF/CFO or FFL issue this letter to take effect on the first day of the FFL or LA assuming their role, remaining in effect through the individual’s tenure in their role unless formally revoked.
The VPF/CFO or FFL may, at their discretion, revoke any previously delegated or sub-delegated financial authority. In the event of revocation, the VPF/CFO or FFL inform the impacted FFL or LA in writing. In the event of revocation of sub-delegated financial authority, the FFL also informs the VPF/CFO in writing. The VPF/CFO or FFL also inform the UL.
1102.2 Financial Leadership Reporting Structure
Each LA has a Dual Reporting Line structure with respect to their Financial Management accountabilities and responsibilities that includes a reporting line to both a UL and an FFL for each unit they support. Within this structure, the UL supports and oversees the LA for the overall performance and direction of the Unit, and the FFL supports and oversees the LA for the Financial Management of the Unit. The LA is accountable to both the UL and FFL for Financial Management matters. Since every Financial Management activity in a Unit is connected to its LA, the Dual Reporting Line ensures accountability to the VPF/CFO for these activities.
Note: The specific Dual Reporting Line structure for a Unit may vary from the standard described above, depending on the needs of the University and the Unit. Any variation must be approved according to Special Situations & Exceptions below.
1102.3 Financial Leadership Accountabilities
The UL, FFL, and LA are critical partners in ensuring the financial health and success of their Unit(s).
All three leaders are accountable for the Unit financial results, including but not limited to:
- Ensuring all University funds (including grants, gifts, endowments, etc.) are managed in compliance with laws, regulations, and applicable provisions of contract and grant agreements;
- Ensuring expenditures are within the approved budget and consistent with the mission of the Unit;
- Ensuring the appropriate application of policies and procedures for financial internal controls and compliance;
- Ensuring the effective and appropriate use of University resources;
- Ensuring the inclusion of all material transactions and liabilities in the University’s financial records; and
- Reporting suspicions and/or allegations of fraud to appropriate authorities.
While all three leaders share certain accountabilities, they have important differences as well. Please see Roles & Responsibilities for additional information.
1102.4 Lead Administrator Employee Lifecycle Oversight
Under the Dual Reporting Line structure articulated in Section 1102.2, above, both the UL and FFL occupy supervisory roles with respect to the LA. As such, the UL and FFL share authority, including equal decision rights, with respect to hiring, compensation, goal setting, and performance management of the LA. To accomplish this goal, the UL and the FFL are required to engage as equal partners on an ongoing basis and collaborate on supervisory activities and decisions with respect to the LA.
1102.5 Financial Management
It is critical to the financial health and success of the Unit and the University for the UL, FFL, and LA of a Unit to engage as partners on an ongoing basis and collaborate on core Financial Management activities. To accomplish this goal, ULs, FFLs, and LAs are required to participate in the Financial Management activities detailed below.
A. Financial Review Meetings
The UL, FFL, and LA are required to meet periodically, and a minimum of four times, during each fiscal year to review the financial status and Financial Management activities of the Unit.
The LA is responsible for scheduling the meetings as well as preparing and distributing the agenda and supporting materials in advance. The only required agenda topic and supporting material is that each meeting must include discussion about the Unit’s finances.
B. Periodic Internal Controls Assessments and Audits
The FFL and LA are expected to actively participate in any internal control reviews or audits for the Unit during the course of the year.
C. Calibration of Financial Health and Risks
On an annual basis, the VPF/CFO, or designee, is responsible for convening individual or group meetings with FFLs to discuss the financial health of the FFLs’ Units.
1102.6 Annual Attestation
On an annual basis, the UL, FFL, and LA are each required to complete an annual attestation regarding the completeness and accuracy of the Unit’s financial statements and to report any exceptions, as appropriate, to the Controller’s Office. This process, overseen by the Controller’s Office, supports the University-level attestation completed by both the President of the University and the VPF/CFO as part of the review of the University’s financial statements by the board-appointed external auditor.
1102.7 Escalation
It is critical for the UL, FFL, and LA to engage as partners with respect to the responsibilities described in the sections above. In the event the UL, FFL, or LA reach an impasse with respect to a decision and decide to escalate the issue, the three leaders are expected to follow the escalation path(s) described below:
- For Units within the Yale School of Medicine (“YSM”), all escalations must be raised to the following individuals, either jointly or collectively, before proceeding to the next escalation step:
- Deputy Dean, YSM Finance & Administration; and
- Dean of YSM.
- For Units outside YSM, and for YSM Units escalating beyond the step described above, all escalations must be raised to the following individuals, either jointly or collectively, before proceeding to the next escalation step:
- VPF/CFO;
- SVP Operations; and
- Provost.
For all Units, if an issue remains unresolved after the above escalation steps, the issue may be referred for final disposition to the President.
Special Situations & Exceptions
Requests for exceptions to this policy require prior approval from the VPF/CFO, in consultation with the cognizant UL and FFL, as appropriate.
Roles & Responsibilities
The roles and responsibilities detailed below are specific to the Scope of this policy. That is, they pertain directly to the Financial Management of a Unit and the associated roles, responsibilities, and accountabilities. Each role listed below may have duties and responsibilities outside the scope of Financial Management of a Unit; the absence of those duties and responsibilities in this section should not in any way be construed as limiting or otherwise modifying them.
Finance Functional Leader (“FFL”)
- With respect to the Unit(s) under their authority, responsible and accountable for providing broad financial oversight and directly supporting the Financial Management of a Unit as needed.
- In partnership with the LA, responsible for fostering understanding, alignment, and mutual accountability between the Unit and central financial functions.
- Responsible for formally sub-delegating authority and responsibility for the Financial Management of a Unit or group of Units to appropriate LAs.
- Engages as a partner with the UL and LA to ensure the financial health and success of their Unit(s) by participating in the Financial Management activities detailed above.
- Engages as a partner with the UL to supervise the LA in accordance with the established Dual Reporting Line structure and the supervisory activities detailed above.
Lead Administrator (“LA”)
- With respect to the Unit(s) under their authority, accountable for the Financial Management of the Unit.
- Responsible for the management and oversight of the Departmental Business Office(s) under their authority.
- In partnership with the FFL, responsible for fostering understanding, alignment, and mutual accountability between the Unit and central financial functions
- Engages as a partner with the UL and FFL to ensure the financial health and success of their Unit(s) by participating in the Financial Management activities detailed above.
- Accountable to both their UL and FFL pursuant to their established Dual Reporting Line structure and the supervisory activities detailed above.
Unit Leader (“UL”)
- With respect to the Unit(s) under their authority, responsible and accountable for the overall direction and performance, including Financial Management.
- Engages as a partner with the FFL and LA to ensure the financial health and success of their Unit(s) by participating in the Financial Management activities detailed above.
- Engages as a partner with the FFL to support and supervise the LA in accordance with the established Dual Reporting Line structure and the supervisory activities detailed above.
Vice President for Finance and Chief Financial Officer (“VPF/CFO”)
- Responsible for managing the financial affairs of the University.
- Responsible for formally delegating authority and responsibility for the Financial Management of a Unit or group of Units to appropriate FFLs.
- Responsible for reviewing and dispositioning requests for exceptions to this policy.